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tv   Public Utilities Commission 71216  SFGTV  July 15, 2016 12:00am-3:01am PDT

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>> good afternoon i'd like to call the san francisco public utilities commission to order. >> commissioner moran kwvrn and commissioner caen is expected shortly. >> thank you. >> next speaker, please. >> item 3 approval of the minutes of june 28, 2016. >> you have before you the minutes of june 28th is there a motion to approve the minutes. >> second. >> public comment on the minutes hearing
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>> all in favor, say i. >> i. >> opposed? minutes passes. >> item 4 general public comment i see mr. da costa has public comment good afternoon. >> good afternoon, commissioners today i'll be speaking about the digesters i wanted the commissioner to pay attention including the attorney so there was a time when the people of san francisco were told that a san francisco public utilities commission would address the mitigation of 0 both at the time the clean drinking water and the wastewater and when the time came the commission at the time not to commission maybe commissioner caen was on the commission that decided okay. we are going to stick with the clean water and
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relegate the wastewater to the side this is what is happening if the bayview or the white communicated and was bombarded with a stench we get there would be a hue and cry the epa and the president of the united states maybe invited to take a sniff at what is happening this is continuing to happen in the bayview even though the digesters in district 10 see this stench what happened with the stop i'm not blaming them some of them maybe climate to the stench we want to know just the public wants to know if billions of are spent on the digesters what is happening a timeframe what really is
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happening when will the stench be addressed how will that be addressed when will the digesters come and y what year 2020 are 2030, 2040. >> now 5 percent of the community fund westbound set aside another one and $50 million you didn't notice directly but you know this indirectly 200 thousand something else is given to summary jobs and the community benefits whatnot one meaningful meeting about the digesters 0 so somebody can give us the timelines and address the stench the community has been adversely impacted our infants and children and youth and young
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adults bombarded with the stench as far as the incentive and some people don't care can we have this hearing with all the commissioners so he know what the hell is happening thank you very much. >> hearing none. >> next speaker, please. >> communications. >> you should have before you the communications any questions or comments on communications. >> any public comment on communications hearing none. >> next speaker, please. >> item 6 other commission business. >> commissioners and any business public comment on the business that we don't have (laughter) >> next speaker, please. >> item 7 is report of general manager. >> good afternoon mr. kelly is
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in denver attending a utility kwefrnsz part of board of directors for the nationality association of the clean water and two items in the general manager an update mr. richie. >> steve richie this will be a short update here's the typical storage chart i show a couple of things the hunters point reservoir is absolutely full we're doing water from hetch hetchy been 10 feet above full
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capacity so water bank is 73 percent for 4 hundred and 13 acres that guess as full as it will get from a storage this is the maximum level in storage this year that will go the main part of summer and to the fall on the precipitation font precipitation basically has leveled out maybe a freak storm here nor there but this picture will not change from october to november at this point and similarly with the snow pack that melted away we're just riding through the summer and looking forward to what next year might bring i've shown this available to the city and again, we ended up with one and 60 acres below the level that the water that the water bank is in now we have a lot
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more water than the past two or three years and not enough water to fill the system the one thing that changes is if the demand picture of this chart modified a little bit the black line it is dash dot dash dot our 10 percent level to the customers to achieve the purple doted line is the 2013 demand so this black target line is 10 percent off of that purple line up there as a general demand curve our demand is crept up to two hundred and 29 million gallons a day we're delivering to the customers in the ground water storage it operationally is into being so o going 0 san bruno and others city's in san
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francisco and with the popper ground water we are recovery our true demand is 200 and 25 thousand gallons it's creeping up into the summary it's a been fairly hot and not excited until about another 10 to 15 million gallons a day before there is a reason to be concerned about the level of demand and generally our customers are experiencing some rebound but not a heck of a lot. >> so want to summarize the lessons we've learned over the several years of dry water to the water management is dried-up to help us ride through this this drought is challenging due to the fact of population growth and living with that the agricultural changes out there
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people going to more pardon me crops and the internet social revolution you've seen pictures of it and the state government is much more active and continuing to do that the governors last emergency declaration carried through january of next year to he's expecting it to stay engaged on the drought we're all doing more reporting that is here to stay and in the legislation water use efficiency and water rights will be hot topics as people pay attention to the things into the drought for the next for seeable future and last but not least the drought is not over as far as you're concerned that's why we have to continue with
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conservatism but looking forward to next week we're not full we need to get full to poll out of the drought but every year is a dry stench i'll be happy to answer any questions you may have. >> commissioners no questions. >> thank you very much. >> thank you. >> next general manager item. >> next is the cleanpowersf update by mr. haley. >> barbara hale for power we have more steady state kind of news how cleanpowersf continues to serve the customers we're at the 74 hundred active locations today our opt out percentage so 1.5 percent the last recorded anothers 3 percent opt out outing folks are still getting they're first utility bills i think that is part of influencing factor but
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1.5 percent is a low opt out rate we have a steady 3 percent are participation our green option our supergreen for wfldz renewable that is that level for the last month and we continue to serve the customers if the hetch hetchy on the active for august one last meeting we had 4 hundred and 71 preenrollments and day it increased to 4 hundred and 97 with those folks signing up for supergreen over 70 percent of the residential customers are signing up for supergreen that's exciting in order to continue with the august enforcement and services in november we're continuing two our procurement planning efforts and the supply needed to meet
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that additional enrollment and coming to you on july 26th with an action item to make it clear we have authority to exceed the 50 megawatts assuming the supply is available that it meets the affordability and the phasing best practice and content practices you adopted back in december and the final message we're staffing up so i'm excited to say we've filed positions and conduct interviews and bringing on more analysts and staff to continue to increase our participation in the program and i wanted to say thank you for the support in the budget to get those positions lined up and also to say thank you to the hsr at the puc for the expeditious progress thank you i'll be happy
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to answer any questions you may have. >> questions. >> real quick on the staffing do we foresee the majority or the extent of all the risk shuns will be employees. >> we're procuring some services both for the the back functionality the transfer with pg&e that's the service we've hired out for much line marin and sonoma. >> what's that consist of that is taking the meter read data and matching it up with the rates and presenting did information to pg&e in a way they can factor into their billing system a lot of data intensive it intensive work making sure the rates that are in the applied to the data are
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accurate in a form that pg&e's system will accept that's an area of expertise that notable energy has developed here in california they provide to service to direct assess customers in pg&e and california public utilities commission and other territories with the advent of community choice aggregation expanded into that area the other functionality we're procuring from them call center services we envision bringing that in house with our own customer service staff perform that function as a program grows and we get out of enrollment mode it is boom and bust and more of a steady state call services. >> i'd like to go - so thank you barbara for years we've been talking about the jobs
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component. >> yep. >> so i'd like to have a little bit more opportunity to have a bite of an a lot of community folks that participated with the support of whole finish i don't know we've had a lot of discussion about the clarifications the entities performing those functions elsewhere we probably could all pretty much agree that san francisco has been maybe a little bit differently in marin with respect to organized labor. >> absolutely on that point commissioner, you know, we have the civil service staff marin didn't they operate as a transbay joint powers authority and the civic rules don't apply to their compensation packages that being said working with the human resources director we got
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their organizational chart and job classification their compensation packages as we're build outing our program he know what the industry standard is full so we got that information from lancaster choice energy from sonoma and marin clean energy the other operating psa on this lancaster choice is a city department run aggregation program the only one's like us operating within the county civil service group we're doing that compatible it is - >> jason got up hopefully he'll touch on that i'm sure that's been deliberately and thoughtfully considered.
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>> not necessarily now. >> sure any other questions commissioner moran. >> on the volunteery sign up if someone goes on the sign up you're the customer will that be immediately or wait until the next roll out. >> not immediately but for the next roll out we're close the enrollments on august 1st and those customers on the list of august 1st will be served november 1st under the current plan. >> so july is a month that people want to get in the next roll out this is the month to do it. >> act now good point. >> thank you. mr. fried
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jason fried, executive officer i hadn't going to speak but wringing up questions about the labor i want to remember that when we were launching this program in order to have the system we're currently using outside vendors would have taken time to build and develop have something today, we can use and get the program launched and bring in the services in house the contract allows us to bring the services in house the biggest problem the call center and the puc is not largo enough for november and needing an additional opt out center it is not big enough to actually do that i think your staff is in a - doing a good job i've been talking about with the how to grinning this in that is important to me as i - i was a
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10 to one member and the same people that work why the call center i've definitely pushed for that and you asked that question i know your staff has a good plan to slowly get there at some point in time we need to build our own system to not need outdoor vendors that it takes time we need to test it with the pentagon system as soon as we test i'll not be surprised they'll make that harder to apply to the system i think we're going about it in the right approach and another some point bring a little bit of this work more in house the staff did a good job so i encourage you from time to time to question where it is at we're at a good
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spot we're getting the services we need while we're getting the program launched thank you thank you any comments on this item >> without objection i understand a member of the public has a general public comment if no objection we'll take that comment now. >> good afternoon. >> you how do you know. >> let me put my hat on. >> take your time. >> there we go. >> (laughter). i'm ann from friends of camp mather and the volunteer leader for the last week so the last week i hope to see you this is what the cap is all about we
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hope you're having a good camp mather and having a good time i think someone said they were still it camp mather when the saturday roles around we wish we were there but to thank you for all the support and - help to let you, you know your invited to a western country celebration for the barns family for 86 years and gary and his wife elizabeth decided to retire their the 3 generations family that handles the coral at the cabin and we wanted to thank them they've been absolutely wonderful from the little kids to the big kids to the advantage kids like me their extraordinary and we have been happy and lost pictures you're a gay la on
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september 24th a saturday from 6 to 10:00 p.m. will be at our you're asking for place the lake merced and we have posters and cards to remind you i'll probably be back when i get back from camp mather i'm sad i'm not there being back in december to remind you put it on your calendar and thank you very much >> i'm heading up to camp mather technique. >> i'm looking forward to it. >> (laughter). >> yeah, i'm sorry not the same week. >> commissioner moran. >> and at the party i hope we get jason to talk about when his father helps from the fbi. >> we should do that yeah. >> some part of san francisco history for a long time. >> his dad was down here with
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the horses in the stables they have a great family history a great family really, really nice we'll have to ask him that we're hoping to get a lot of pictures of the family. >> do we know who is taking over the operation. >> there is a new person or new group and i haven't been up there so i don't personally know you'll meet them they're very noise so same things are happening the same best breakfast the moreno light with the country breakfast and have country western music by way of so with my hat with the country western music event. >> thank you very much okay next item. >> is please read number 8. >> 8 did sewer system improvement quarterly update.
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>> through the financial schedule and talk about our recent chuchlts and updates on the projects going on and wrap up with workforce development and updated or update on the stakeholder outreach we have 70 projects underway 49 of them in planning and design and 5 in awards and 10 in
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communication things are moving this is phase one representation we see each quarter and currently 11.4 percent that is going to kick up as we get more into construction. >> this is our progress for the phase one again and as of the close of the last quarterly report the close is march so several treatments of the projects are into construction and d c y is the next one followed in a year and a half by another project and like to always go back to the early implementation the green infrastructure 3 in construction the reason the sunset looks funny we're doing a design build and working with the department of public works and designing the blocks while
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their building the previous blocks and trying to keep that running in the area of sunset mission and valencia or less awarded and under construction over the next couple of months visitacion valley the wiggle part two and chinatown green alley will be going out and staring the reasons end of this year, the last two are yosemite and the beach some of the achievements that was a big list getting to you and getting through that march 22 meeting where we established our baseline scope schedule and budget that's the basis for the detailed scheduled now the detailed loaded schedules and those are the reports on a quarterly basis and seeing me in august i believe when i come back for the next quarterly report a little bit less of a
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lag time as we issue those documents and part may be able i'll r you'll hear 2, 3, 4 from the 10 merging the agreement was extended to the ssip project for contracts over may 10th that is exciting that lays out the established fraction for the project and scheduled a - this is something that will be evolving as we egg still using that project one of the alternative analysis phase projects designed for levels of services for performance comparing the alternatives for the bottom line.
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>> there's a lot of work with the ceqa progress and it will be continuing through november 2017 we have advertised the r f x an $800 million for the general contractor and gastrogoing through that selection of that contractor over the next 6 months the head works project is moving forward that construction general contractor selection has been made and awarded at the commission their 0 moving through the 35 percent and both projects are in parallel to the arts commission to talk about the approach how to approach this as incorporate the art and how we're looking this focus so we can have the best project delivered for the neighbors after we're complete and d c s a advertised and a report was
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delivered to a - a few weeks ago those are projects in construction we actually have 10 projects many more now are our at the plant since this is existing and momentum things are going out and the next phase a few green projects since the flood control projects will be going out with the sewer improvements projects we're working with other agencies and in some cases the mta and the other departments and replacing a sewer line that is old as part of a project lead by another department and here i want to focus a little bit time this is something that is pretty exciting we're working to judiciously with the economic would it be fair to say to
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provide real small business and job opportunity to san franciscans prairie from the southeast community and have 19 active contracts 10 are professional services and 9 are construction and the lbe the impact we've been able to have on the small businesses is even more permanent or preponderate 2/3rd's of the sew contractions have been awarded to one and 5 lbe's that is one and 64 million dollars of work this is substantial our local hiring ordinance requires a percentage of workers be resident of san francisco so through 2016 this is to range between 20 and thirty percent for the ssip we've applied this so work on 38 percent of the projects we've berry been speeding the projects and this
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is equated for the combined $6 million in wages and benefits on over 60 thousand hours district 10 and 4 and 9 worked on this the san francisco percent of the hours and my colleague wake up u came up with that idea of the craft hours as of march 31st, 2016 over one and 60 though craft hours by 5 hundred workers and earned $10 million in wages this shows the distribution of where the workers are and where the residents are and primarily down from hunters point the mission, the sunset as you can see the majority of work so we're having a positive impact on the local communities one of these is that nearly 40 percent of the hours on the ssip nearly 40 percent have been worked by san franciscans and those
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residents have earned almost $6 million in wages and benefits the opportunity for entry-level workers to begin a criteria in the construction work and the benefits is compounded the result is nearly 4 out of 579 percent of the hours on the projecting are being worked by san franciscans apprentices this is very good i think some of the jobs get bigger that will take more and more of a list to stay ahead of this this will be challenging some of the things we're trying to establish a foot hold our stakeholder engagement a lot of work with the general contractors and standing room only event over one hundred contractors came with an lobe certification how to get a lbe
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state certification some the projects will mta and those opportunities bring contractors together so there is networking we talk about our upcoming projects and get them ready and training classes how to make bids and maximize the interest that we can possibly for our contracts coming up so this is an exciting thing and again folks have led that - we're in the fist year of our student internship into the ssip there are 23 they start in high school and work with through college that is something near and dear to my heart i started as an tenor that was a lange and many of the folks that are now leaders here i like to see people interested in being
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engineers sometimes they're interested in other things at least we give them the skills and closer they maybe hires in the water systems in the future and this is a picture there were not that many kids 5 kids (laughter) that was before some of the schools gotten out but hopefully, this give us a sense interests a lot going on and you're going to be seeing more projects coming to fruition and more work going forward. >> commissioner courtney. >> thank you karen honestly were i don't know of it's
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something we entertain with respect to the workforce i appreciate the workpiece we appreciate that is rated towards various professions and classifications at the you utilize and with the contractors and some of the 09 genders with respect to the trade down the road anticipate a change in economic conditions and so you have a lot of folks who are in those communities not necessarily district 4 i - that's good news they can't necessarily intern into a apprenticeship and a lot of them are not ready for apprenticeship
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and because we've director nolan done it puc has done it and various departments there are ways undertook the invoice of workforce to prepare folks from those communities that point to be prepared we're looking for on avenue to the clear pathway and i'd like to hear more about is like barbara was saying we're stacking i'll talk to the city we've been talking about workforce development i want to get meat on the bones what way to staff up what classifications looking to fulfill with respect to the folks that are the architect of a workforce development with the connection to our programs and what will be our target audience and you know we're doing it on a smaller
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scale i believe we have age opportunity to create a pipeline of workers one real critical mentorship piece that is missing we'll dedicate that out to nonprofits and not done in a consistent way we basically fail with respect to the community folks we're trying to provide opportunity to i'm looking for more robust conversations on the next report on the workforce development pieces specifically the preapprenticeship piece and more specifically with respect to the actual construction industry work in the field. >> if i can interject this is a classic puc issue not on the
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sewer system improvement project but the utility workers of the future and very eloquently articulated you know what the issue we need to create that pipeline so what i'd like to do a talk to the internal revenue who has the elements and talk about coming back and doing more comprehensive project to you if that's acceptable. >> never mind. >> i did for go a few things the team is working with city build and building in the community-based organizations with the pipeline in mind that will be great to follow the leadership juliette thank you. >> so if we could schedule that pretty sure we're in summary. >> we'll schedule that and get back to you thank you. >> thank you, commissioner. >> and those - you've
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identified the challenge of keeping up with that so that kind of discussion is important. >> that's been go diligence and ownership to make that happen and to work with - to solve the problems and fill them with local residents a culture change. >> talk about the community outreach not the workforce but mr. da costa raised those in the quarterly report and dig counsel and find the answers and then some were in the presentation today
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- as. >> we focused on the bio project but we are always talking about the program as a whole start with an umbrella of puc and the ssip we do a lot of small business outreach our folks were at hunters point cac and done the webinars with the with the outreach we were working with the southeast on a monthly brass that was by abrams and talking about all of our ssip projects and connecting them together when i start to tally it i think we probably had 50 to 70 meetings over the last
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year and a half maybe i'll if the chair and you took the words out of my mouth to provide a write-up to - it is an esteem amount when we had a metro quest public survey so if people can't attend the meeting get input and a lot of workshops that format has worked better than attending a meeting so we have a 4 hour window for the staff to explain the issues surrounding this so i'm happy to provide a comprehensive report because it is. >> we're trying to catch dog patch and castro hill and
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bayview hunters point and pull in the populations of people i think staff is doing a job but happy to provide the correspondence to give you an idea and best further - >> one of the things just to ask folks to think about is this is a huge program very complicated and in the complexity 0 losses site of basic things for the comments number one there is owner that's a real simple problem to see it is a smell not a simple problem but identify that as a problem is something that anyone passing talbot neighborhood and the frustration how long it is taken to manage you're absolutely right the program was put on hold and as a result we
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had to spend a lot of money to do do repairs that do mean anything to the fix those repairs give people false hope so what i'm thinking there is despite of complexity there is fairly basic concepts that need to be dealt with anyway and i just like some thought to be given you know in the future report and come back to the committee how to address those surface level concerns not the deeper dive but the stuff where we're concerned about. >> i will look at that.
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>> i'm hoping we can get feedback to stay on top of the investment decisions. >> we have great results in caesar chavez and some ones are wrapping up this is where we should get more you know wet weather wet weather. >> yeah. but we'll continue to be able to get that information and caesar chavez is one i can certainly provide that up you to that was very good and baker did well. >> that would be great to start to unpack the metabolics and the opportunities to the water retention and diversion and any other benefits that we you know are hoping for in that prom we're participating in the national ground level certification program it is
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getting that even training for portfolio for the maintenance workers this type of thing a national standard because it is a fairly new area of work we have an opportunity to get something that could be national standard so people can know it is a mobile skill and and then across the country. >> i heard interest in having you come before us more rent control i don't know about every month but i see you are smiling. >> smiling. >> maybe every two months it is such a big program and piece to keep track of i would suggest that is the yaerl update this is produced and takes a while to put together if you want a monthly update we can do something along those lines. >> that would be fun and have a regular program.
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>> we get those clean power updates that make sense. >> i'll focus 10 minutes on making sure the communications type of thing is rotated. >> okay that would be great unless objection. >> no, i be given the nature of those procedures that is easier to deal with small fifths and not hang up quarterly. >> thank you thank you any public comments on the report. >> hearing none. >> next speaker, please. >> item 9 are considered to be routine may be acted upon by a single roll call vote of the commission. there will be no separate discussion of these items unless a member of the commission, the public, or staff so requests removed from the consent calendar and considered as a separate item at this or a future hearing.
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9 a to c s one 44b and 30 years the agreement up to one million dollars plus bad actor accept the contract r for a total amount of 79 plus and c ward contract not to exceed of $5 million to the lowest responsibly bidders services energy systems incorporated and d ward nooiftdz $5 million to the lowest robust construction company and e ward the contract number e-61 not to exceed $2 million to the lowest qualified responsible and robust bidders to c s incorporated and f accept the contract approve the modification number 22 decreasing the amount by
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$5 million plus and authorize the final payment to the contractor. >> g accept the contract number approve the modification number 5 decreasing the contract amount by 75 thousand authorizes the final payment to the contractor. >> thank you commissioners is there a request to remove any of the items hearing none a motion to approve the consent calendar. >> any public comment on is consent calendar. >> all in favor, say i. >> i. >> opposed? the consent calendar passes. >> next speaker, please. >> item 10 has been removed from the agenda and reconcealed scheduled for the next item and item lovingly approve the 5 year revoking license to the portion of sfpuc in hillsborough
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california. >> good afternoon, commissioners assistant real estate director we're proposing the work in the right-of-way as part of pepper water project that involves the installation of a new 12 inch pipeline to replace an existing line it connects to our value line the scope of work in the property economists of disconnecting the old line and removing it from our property once in service the new line they're constructing the 12 inch line is located within the public right-of-way the town of hillsborough planning department issued a categorical exemption from ceqa and the puc was responsible agency concurred with that determination the sfpuc proposed to issue the license with no in accordance with the 2015 real
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estate guidelines approved by that commission after that item was placed on today's agenda they removed the structure with the band in place allowing for a 6 month term rather than a 5 month term and thankfully the resolution gives of these general manager the authority to reduce the term because such an amendment is in the best interest of the city and not increase the obligations and all the terms and conditions of the license remain the same any questions. >> questions. >> is there a motion to approve the tefrmz and authorize the general manager to exude the lease. >> second. >> any any public comment on this item? >> all in favor, say i. >> i. >> opposed? approved thank you very much
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closed session we have no closed session items today. >> i know. >> thanks moreen. >> you'll get the gift of time and go on to item 24. >> item 24 other new business and commissioner. >> newbusiness? >> final public comments hearing none the meeting is adjourned
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>>[gavel] >> i call this thursday, july 14 meeting of the transport joint powers authority board of directors to water. these call the roll mdm. sec. >> director kim will not be present. tractor gee, here. nuru, present. you do have a quorum however i believe director [inaudible] >> okay. >> shall i call your next item? >> please >> item 3 is medications >> i'm not aware of any.
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>> item 4 is board of directors new and old business >> i have some. actually, two items. last night the ac transit board had a presentation from mtc people doing the core capacity study and of course, we're right in the middle of the core capacity study as far as san francisco and the east bay is concerned. is this something that we want to see soon, later anything? it's mostly something that we already know if we ride bart, which is things are going crazy out there in terms of the transbay and exactly what the numbers are and how big they
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are and how quickly they're going to get big. according with people well done the study it something we may want to see. so i want to know something we should contact them because they're going around getting it now sooner rather than later? >> [inaudible] >> you're already familiar with it. yes? >> [inaudible] >> all right. the other thing is one of the things i don't that sometimes gets us into trouble i think is when legacy things from years and years ago that happens or some reason, when it's not even in everybody's best interest currently. so one of the things i want to put forward was that a difference we do it ac transit buses here in which we are closed session i had of time and there are like 45 min. at a time and they're fairly regularly scheduled the reason we do that is because nine times out of 10 there's no [inaudible] in closed session. there's just guidance from attorneys and things like that. so, that way people could come
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early and want to be in the closed session if there is wanted otherwise, they just come for the regular meeting and just be doing that. i'm trying to also get us a little more time, total, because i think are closed sessions as time goes on and actually going to get bigger. i mean, the litigation things as the thing matures, you get more and more contractors on and things like that. i think within a want to keep up to date on litigation things. i'm going to ask that the closed session be coming up, about some reviews of our appointees with the board. things like that. so it was just an idea i want to throw out there. we just removed are closed session to ac, earlier rather than later and everybody
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likes it appeared it took us a while to figure out that if i just want to pass that on. it's going to be at the beginning or the end because i don't like moving people out of the room and then forcing them to come back in which we've done a couple times good so, is there any preference you're having something like a 8:45 a.m. closed session and then having a regular calendar start at 9:30 am? without be available to everybody? i don't know it would be easier to get here sometimes depending on [inaudible] if not, we find a pretty good because people-that way we got more time rather than trying to figure out because otherwise if we have to be out of here at 12:30 pm, dropdead, were always trying to figure out how much of the closed session do we need? how far can i go? squeezing things in. so, part of it is that the way to get based on >> [inaudible] >> you want to try the earlier?
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all right. >> i have no preference. my only preference where respectful of our public that we do say it were going to start at 9:30 am we start promptly at 9:30 am and have the opportunity to be here and present >> one thing we do at ac, too, because if the closed session runs over recently go back to closed session if we have the time at the end of the day. yes, i agree with that. >> what we can do is agenda eyes this to that change the rules of order for the next meeting >> yes >> we can act on it at that time >> yes that i know director kim is not able to be here and she will want to. >> all right. next item >> all right. your next item is item 5 executive directors report >> good morning directors. i'm pleased to inform you that on june 22 we successfully closed [inaudible] four $160 million in a joint venture of urban city development in the cities
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of heinz. and broad street principal investments affiliate of goldman sachs. it deals with a $50 million premium and assemblage of parcel f with adjoining 548 howard property did with the sale we complete the funding for phase 1 of the transbay project. in total, the transbay sold $669 with a went to fund construction of the transbay sent. the goldman sachs bridge loan was paid off concurrently with the close of parcel f. the final agreement is an exclusive ago zhejiang [inaudible] lafleur would be available in early 20 team after the opening of the transit center and the commissioning of the temporary terminal. we are grateful for the support we've received from the board, this board. ocii, san francisco board of supervisors, and city officials and city staff.
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>> i have a question on that. the block for he needed to be vacated, does anything to have to be demolished or anything for? do they take it as is? >> i-debra can you- >> sure to visit 2008 option agreement between the transport joint authority the city and ocii the grant us an option to acquire the block four, the whole temporary terminal site after the transbay is done using it it doesn't specify we have to demolish any of the improvements. inmate to be in the interest of the parties for the bjp to go ahead if it is the sale price but there's no obligation. this the 2016 option agreement under which ocii grants its option to the parcel f buyer and likewise there's no obligation for the transport eight transbay authority
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>> that would be good to get clear because those things bus terminals to demolish a more difficult than you think. >> well i think it sounds like they're going to get it furnished >> yes. if they get it first, that's fine. but i want to be-now, what is the date in which there's a penalty provision, right. if they don't get it by certain date, what is that eight? >> after july 1 20 team >> after july 1 20 team, it starts a penalty >> yes >> it can be delivered on june 30 20 team that's fine >> yes >> okay go ahead >> so i reviewed june 17 and we received three proposal. the three responses my proposals came from teams by lincoln property company, william partners, and young would associates. they each have a variety of other companies as part of their team to for fill this scope described in the
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rfp. the transbay joint authority has included experts in local market to review evaluate and review the qualified respondents. they include members from the city advisory committee, city of san francisco, ac transit, advisers, which is our consultants, members from the private sector and [inaudible]. upon initial review the delegation committee recommended issuance for clarifications of the three teams. the responses to our clarifications would be due this friday. after that, we will score them. they will score them and we will start interview process beginning of august. will provide you with more details later in this meeting in closed session. as a follow-up to our last month presentation, we are continuing on caltrain and high-speed rail regarding the proposed facilities charges. which are,
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components of a proposed funding plans for phase 2. specifically, we are working with staff from both agencies to discuss outreach from the respective boards who would be receiving prps. we've a meeting with them on july 29 with a large group of people from both staff from both caltrans and high-speed rail to discuss that in both move forward with that discussion did i also meeting with on this afternoon with mtc i will be discussing also the update of phase 2 and the funding plan we have proposed. at this time, i'd like to ask [inaudible] to present the project agreement updates. >> good morning board members. this is my second quarter of 2016 chelate quarterly report. i'll go through the same ailments are usually goes through the administration, that roberts and the of reports
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it should be all very familiar. the administration we had our next joint administrative committee member meeting on june 16. we went to the construction update apprentice programs and veterans programs. very similar. labor, we've had a work stoppage is no issues in the last quarter. we did all skilled labor is been met as we continue to ramp up the project we've had no issues. also, we did a three-year portables through the corridor but for joy the was no lost incident time. some internship program with 10 onboard. you're about to meet most of them i think the majority of them are behind me so you get to see here about their very fruitful summer. they been very energetic and fully engaged lovely having a great summer on a great project and we are more in a few minutes. but what i know, whose
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the web that for veterans has begins a great presentation is energy spent at getting all the different activities and events using digi with veterans there in my reports and fantastic to be here all the efforts that go as being continued to engage veterans as much as possible, direct entry to get coming on board as soon as possible. each of the union reps that were in attendance for that all reference their apprentice robust programs. they were tremendous amount of apprentices that are coming through their training programs and, they see no issues in meeting our needs as we continue to ramp up dirt over the next 2 3/4 and then i summer of next year will start coming down. in regarding labor, we now have a give you a breakdown through the june 16 of the circuit we had 2.3 5 million labor hours and breakdown of the counties for their and of those 2.3 5 million hours, 18.8% is the premises. that's beating our apprentice pressure goals.
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that's good. we're still tracking in the same direction. and here is a graphical representation of that. so, that's a very good in what we are showing. so, with that, all is going well. with the pla quarterly and i work program is being fully met. if you have any questions that's my reports 4q2 >> you have before you the monthly investment transaction report for information. and last ,, with dennis mentioned, were please to have our 2016 class of summer interns here today. we have nine students spending the summer with the transbay joint authority as consultants and contractors. the program gives high school and college students valuable opportunities to begin hands-on training. the students will have the opportunity to work on different portions of the project throughout the summer and focus on aspects of the project beverly to their future college choices and career goals. i expect to make all
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them engineers. >>[laughing] >> wait, wait. we have an architect their >> others >> that's not a good thing. >> you know, i expect make all them engineers. >> obviously, we don't need anymore. >> i think we do. >>[laughing] others want to make them architects that i can tell you our cfo has other ideas. but, i will have them speak for themselves and tell us why they want to be engineers. >>[laughing] >> having technical issues. that eb- >> hello. good morning my name is david-i will be a junior at uc berkeley. i'm majoring in civil engineering somebody on board->>[laughing] one thing i like about the project is the sheer size of it. going through
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it seeing all the steel frames can see how everything comes together is kind of fascinating how it's like a big puzzle piece in a sense. thank you. >> the next engineer. >> good morning. my name is lindsay tom could i go to university high school well be a senior in the fall. i am interested in the engine i'm good i'm not sure what type yet. this summer i'm interning with the mpc. i been working on creating visual representations the transit center and construction progress diagrams. i really enjoy learning about how information is processed and presented to all different people of different educational and professional backgrounds who are all working on the project. thank you. >> i get mine in the same crystal. i am the core buildings and i'm going to be a junior at uc berkeley also studying civil engineering. i really like seeing how what i'm
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learning in school gets to be applied to multiple facets on the project. it's really interesting to see the teamwork that goes into every little thing that happens. technical work with mpt but possibly spending the time with safety and quality and it's a huge collaboration to go a lot of really big things done. >> good morning. my name is alvin mendoza. i been training over it-i'm going to be a senior in the fall at archbishop william high school. i'm also interested in engineering. i'm leaning more towards civil. one thing i really enjoy working on the project is just the flat-out history of the old terminal and seeing how different it is now like it's really mind going to me and mind-boggling however interesting together. thank you. >> imf: o'donnell. i'm a going
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to be a junior at international high school it i'm interning for the tj pa. something i learned on the project is how important it is to account for every detail and how much is really involved in a project as big as this one. >> hello. i'm ringing along. i'm arising senior at a balboa high school. i'm currently interning for tj pa mpc did this summer i have created a list of the property values for the program and also been researching about security robots as a potential use in the transit center. >> all right. thank you. this concludes my report. >> then, for you interns, just don't forget when you're going to all this engineering to learn how to write. because you're going to find your going to need that a lot more than you think you're going to need it were your professors think you need it and i can tell you
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from personal expense, after becoming engineer this the time to go to law school. >>[laughing] all right get next item >> neck sediments item 6, construction update. >> good morning again. i'm going to cover the recent and upcoming activities labor statistics and alternate over to bond to cover the budget and contingency and scheduling challenges for the construction update this month. so, starting with the recent activities the graphic that is here shows what's in going is what has been completed recently. the interesting about this graphic is probably be retiring very soon because by the time we get the september structural concrete will be essentially
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done. that's a great milestone and seen this the last time we'll see this graphic and have to come up with a new one. what happened in the western zone, final southwest corner basically that partial f area was [inaudible] construction elevators and stairs shots are all starting continuing happening. the fireproofing is happening now in the western zone. and we're continuing to work in that area electrical rooms as critical after getting to permanent power having going very strongly in the western zone. in central zone, the awning is the main feature to be tracking. we will be going over for street racing. the upper right-hand picture that shows where the sum of the predecessor kind of activities then there's the successor afterward we've got the metal panels, you've got the thinking that goes on with the bassett
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columns so that switchers this and the bottom right shows the progress that's been made on the bus deck how even we've got the sawtooth curve in place and rebar inside lockout showing up on the bus deck level. a lot of progress in the central zone. eastern zone, we are preparing for the awning. [inaudible] items are starting the welding of all the wall systems is progressing as well. then, were going to have we done some the last concrete pours at the east end as well as the ground level but that and rooftop are all complete. all we have is the mezzanine one level ii at the eastern end for concrete on metal decks. a lot of progress. a recent activities for the bustling, most of it is by harrison. over clementina and down on n. of howard st. in the upper right-hand picture, the bus ramp shows with evan and ms. ewald that's been installed between harrison and fulsome. basically, between the to bridge structures there and then the bottom right shows right before the--there's some pours and that is the turnaround area that's over
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clementina is where the guard shack and turnaround will why not get a lot of work is happened there, both of the frame for decks reported last month as well. lot of good progress as the bus rams starts coming together. central zone for upcoming activities, really completing the w1 awning. that can happen very soon. continue with electrical room buildout which is important there inside the demolition the first-rate temporary bridge which is going to happen in the next month. eastern zone, continue get that last bit of last deck poor. get the rooftop concrete for the walls and penthouse decks. that's the additional buildings that are structures on top of the roof will be poured and then continuing the drain box as we get ready for the poor. that is our last structural concrete board underneath beale street. in the western zone, getting that fire proofing sprayed on continued. it's a big one in the western zone. the electrical room. all the
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electrical items to get permanent power. then, bus ramp will continue to underground utilities, false work over harrison and start the fabrication of our frame five drop injured have not talked about much. it's the gap between the cable stayed bridge in the transit center it's all. it's about a 50 foot section that the fabrication for that is core to start within the month. then, also, an element of note for street will be closed coming up in a few short weeks because of the restriping for the first-rate in preparation to support of the old temporary bridge at first read. so that's a heads-up for that. regarding safety and labor, we did have two portables in the last month. but, as i noted in my kill a report there's been zero lost time in the last month and zero last time but will year to this point. so, with that alternate over to ron to finish the rest of the construction update. >> good morning directors and
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staff. one alameda public works. thanks for such a great oversight the great momentum we've got going out there now. moving on to budget, we, over the last month we've increased expenditures by 27.1. getting up to place where we ought to be in terms of pacing towards our substantial completion date at the end of 2017. that brings us to about 1.4 billion in expenditures and a commitment increase of 33.5 in the last month. so, our total commitment right now is about 1.6 billion. our forecast estimate at completion remains at the same of 2.154 good i anticipate doing another kind of refreshed on estimate at completion for
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probably the next meeting in september. we are about due. i'll try to do it on a quarterly basis. program budget, were at 63%. it's actually a local, smaller than we were last month. because of the recent budget increase were adjustment and we continue at a pace of 1% a month in terms of contract time so we are at 70% complete contact on. relative to the december 2017 contractual completion date. contingencies usage. fairly oversight this market out 2.1 inmate and construction using jim. rosalie manor would team superstructure in metal and electrical work. no real seachange on that front. moving
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on to schedule overall, schedule tracking the three major activities, the transit center building. we have actually shortened the overall duration for the project get so we brought it in a little bit. oddly enough, were showing a little slippage on substantial completion on the transit center . i think that is the w-four system that was giving us some fixed in the last couple months and we are starting to get momentum there, so it drag out a little bit in terms of the substantial completion. i anticipate improvement in the near future on that. i will get into that a little bit more as i do that drill down on the next slide. bus ramp, we are actually gained ground, brought in the total completion and substantial completion of the bus ramp. as i've been
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mentioned the last couple months, in the construction meetings for the ramped it out like we were gaining even though the scheduling your last couple reports seem to indicate it being sluggish. it started a kind of daylight in our high-level data that were starting to do better on the bus ramp. the bus storage facility shows the one for one slippage again. as mentioned in the last report, we are still waiting for the leasing terms to be finalized between caltrans and ac transit. i believe they're still on track for addressing that in september. it's been kind of quiet on that front and in the meantime, other documents in preparation for the bid out project are in place and ready to go as soon as we get a green
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light and funding in place. >> ron, on that one of the things i dropped on ac transit because they had told me, well, given the number of buses that will have delivered and ready to go at the time that we may be able to start on up on the bus that it's up with a minimal amount of deadheading back from the east bay. such that, we may be able to operate before the transit center is even substantially completed. so, one of the things we need to think about is that something we want or not? because it's getting to the point that you know, they're either have to put up or shut up that. on that representation. so, you know, if you and mark say all things considered, if that deck and that ramp are ready to go and you think you can operate out of it, do it. but we don't want
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to go there unless it's really-don't understate the pain in the asset may be draft operations going on there or you try to finish the terminal. >> yes, yes. but will be eager for the plan will double in cases were just not come. so we can meet our time obligations for operation it again, were being pinched by the temporary terminal sunsetting in june of 2016. >> i guess it's incumbent upon us if the transit center is open from december 2017, i think we should start using for operations. i think we i talk to ac transit staff and also talk to the general manager of developing a short-term and long-term plan, such that when the transit center is open you can operate from the transit center [inaudible] and if we
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can store buses on the bus that and the bus ramp and do that, that is fine. if we have to get had some, anything is better than staying in the temporary terminal and having two terminals open. we want you need to come into the transit center when the transit center is open. so, i think just need to develop a short-term and long-term plan and i think we always build the bus storage facility while the transit center is operation. it's under the freeway. >> yes, it's kind of removed >> yes. >> what will be teasing out we've initiated a biweekly meeting discussions about transition planning and bringing ac transit to the table to start teasing out how they're going to activate this building. >> yes good cause for all practical purposes, the item is can go to the agenda regarding the lease is going to be in
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august and even if cbc which hopefully they will approve it. we've already lost six months so it's unlikely that we can advertise the project in august, september, would you be able to finish the bus storage facility by december of 2017 when respect to open the transit center. so we can't really have to have a short-term plan at minimal. >> okay. >> okay. moving to more drill down, workflow stream of activity, you will see that it's a bit of a mixed bag it was seen some gains and losses. you will see that the exterior enclosure and waterproofing, we gained a fair amount of momentum and time and some of that is the acceleration we are trying for activities around concrete and waterproofing. again, and et insulation gained a little ground as well. interior finish, you will see we lost a little ground get i think that that w-for manifesting itself. again, i
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see that kind of getting corrected shortly as well. everything else is kind of holding tight. we see a little bit of gain on the systems and commissioning. some of that is just kind of calibrating our strategy on when we do before or after substantial completion. the interesting part about this, is, you know were trying to fully mitigate and get back to december of 2017 the substantial completion. so, when i first reviewed this i was a little worried that i wasn't seeing the momentum that i was expecting, so i took a look at kind of the next layer down looking at critical path activities and asked myself, what exactly, what are the activities that are in place in 2018? and the things like auto polishing them a bit of training, planting and your vacation around the gray water. what that all tells me is there's a lot of small ball
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going on in the 18 and the vast majorities range into our timeline to meet our substantial. so, we want to keep the momentum going. where the court in our group are cautiously optimistic that were going to rain in the whole thing and were going to keep weaning into that. that brings me to the challenges phase of my presentation and again in summary, with a schedule we are seeing some proof from some of the earlier acceleration around the concrete and the waterproofing. it is a mixed bag right now. at a high-level look at the schedule. right now, we are on boarding a number of other trades. so we are stepping back and kind of analyzing, where our future
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opportunities to start gaining ground, but all in all, as you can see from the photos, momentum is beginning to be had. i just want to note, we are ramping up on the risk assessment at exercise and cmg see schedule will be part of that discussion as well. then, again, we continually try to refine and align ourselves amongst the contractors and the management team to fully mitigate the schedule. the next challenge that we have been tracking is by america. we still have building management, fire management, public address and audiovisual as kind of the last standing issues of by america. mostly attributing around our electrical subcontractor. we met with web core and fisk last month. we
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reviewed these items could be teased out, i think the management was down to 18 items in the system. so, we are starting to tease out what really is a problem versus what's not a problem. in trying to resolve questions about the by america. i also mentioned last month that since we sent a letter to the court and fisk regarding some irregularities we saw in their listing compliance of subcontractors. i have not got a full response. i'm going to continue to look beyond that and make sure compliance is had. so, we may be elevati talking about that in the future with the board and there may be some actions were penalties >> did you get any response at all? >> we touched on it. they promise that they were going to
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submit request for substitutions for some of the subcontractors that we've noticed a subsidy. there about a year late so they're trying to unring the bell if you will. we just received yesterday one request per substitution. it seems to be fairly in order again about a year late technically. technically, you need to get permission to substitute before you do submittals and all of that. so, we are continuing that to make sure we get well grounded with the fair practice act. so, more to come on that front. the next challenge, again, that we track is change management. i'm happy to say really the only real change management challenge we have is down to the ac transit bus that
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reconfiguration. in the last month, we met with ac transit. we reviewed a couple of options, option one and two. we have ascertained that option one is probably the better option as a post substantial completion reconfiguration. it disrupts fewer other transit systems. it focuses the curb change in the middle, resulting in 12 articulated bus spaces. so, and we also presented a rough schedule and cost estimate for doing this sub-project. really, it's down to one or both boards to step up and approving the
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modifications and finding and authorizing the funding, which is a neighborhood of $900,000 to advance this modification. our rough schedule shows we need-a decision from both or one board prior to january 2017 get so we can kind of dovetail it into the flow of work right after post-substantial completion. >> how many fewer bus bays total now that they changed-they wanted change 12 to scuttle? >> right. the original design has two architects. so it's an increase of 10. basically, for every three regular days you reduce it down to two. so, every additional day essentially, you lose one >> you lose one.
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>> for everyone. at the end, you'll see on the layout the one on the far right, that one was at the end and we had a little elbow room so we didn't lose any date there which is kind of nudged it a bit. but all in all, it's a reduction of three days to two. when migrated to articulated buses. >> yes, so, ron, can you explain when you say post of it-substantial completion but what you actually mean in terms of-? izod about 2018, sometime in the future was that immediately after substantial or operation start? >> yes. it's basically to ensure we don't get in the way of flow of normal work. so, come december were maybe a little early on depending on the flow,, that is part of the thinking of getting the groups together now on a biweekly
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basis and starting inviting ac transit and the other greyhound and what have you. we can under so we can understand what expectations they have when they arrived to the them get when you're ready to hand off in december, what is the activation going to look like. so we can dial that into this scheme and maybe get in a little bit before december and start doing some modifications. but, really, it's ensuring that we don't get in the way of the flow of the major current contract. >> director peskin, just to clarify, we are looking to follow contract. not part of the current contract. it can be done after the current contract is done. it means [inaudible] hopefully several years afterward. if it becomes merely after this contract, then
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[inaudible] this part of the operation >> do we know when ac transit into space having the number of architects that would require this reconfiguration? >> it's not very clear to us scuttle but i know they needed at some point >> that's when the problems is that we have architects. we didn't plan on running as many into the terminal. we wanted to run double-deckers. there's only one american manufacturer in the country on out and with the by america to. so, were putting in orders there but there's only so many the setback has been inundated with those request. there's only so many they can put out in a given amount of time. so, we don't know what our passenger load is going to be right off the bat. but, just in case, thinking okay if we got heavy passengers coming in here right away were going to have to run some architects in their and so it's a basically
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everyone signed to guess, what's it going to look like on day one and what are we going to have? but, this transition we are making from architects from double-deckers is not that easy because double-decker buses in the united states are just getting started. >> i mean, desires to open operate monitor and then figure out how to make the changes as desired while we continue to operate. >> i guess, my feeling would be we should try to get as soon as we can clarity from ac transit on what they think your operating plan will be because not to be a spoiler on the presentation from mpc, but there's a significant capacity problem today in terms of the core capacity transbay and the
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regions already looking at potentially funding additional vehicles for ac transit to meet that because part can do so in the short term. to the extent that ac transit has-already a good essentially with no cost operationally, or minimally cost operationally start to address that core capacity need.. it seems like we want to build that in somewhat from day one and not too oversimplified the past but it looks like taking four days and converting them to three >> three 22. >> it's relatively i think we can kind of [inaudible].co in to training and what have you. it is >> just the idea that we are still 18 months out and i don't know, construction wise, get a looks like things are starting to pour on the deck, but if we could figure out sooner rather than later like
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not in another six months but in another month, that this is what we want to do it seems like i get there's a little bit of risk but it might make sense to get it right the first time rather than to pour a bunch of concrete open the facility >> the talks are underway >> the curbs are pretty much laid out in the rebar is in place. you know >> this is already essentially poured or will be? >> yes. it's been pretty much >> we probably lost that window? >> yes. all it does is add a bunch of risk, delayed claims, what have you. i'm quite confident that we can kind of dovetail our selves in and get it done. as soon as we get funding and an okay and you are right, we can get it next month rather than before january all the better. we can put it into
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our mix of transitional planning discussions with ac transit. were going to meet with them next week, is our first meeting with them to kind of, who is involved, what are the expectations fully operational building so we can tease out what is the activation plan as we get good momentum out there, were in a better position to hand you a building in december. we really need to make sure we have somebody ready to receive and ready to go on the jump and start operating. so, that really underscores the importance of these parallel push on the operations side two-so those bodies, those people, those groups understand what's going to be handed to them in december and are fully prepared to get momentum. >> thanks.
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>> moving to the last slide, s month i mentioned the eagerness to get the bid passage, 1.5 network gear. i'm pleased to say that is out on the streets. it was delayed a little bit because we kind of slow walk through the by america questions on that one. prior to hitting the street, so we are eager to see that-those bids come in a number of weeks and get that last puzzle piece in place in terms of procurements. with that, but take any questions. >> questions? thank you. go ahead. >> gone wrong, nice report. >> thank you >> i think we do this at a quarterly basis sort of so maybe in september report or i
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think september is about the right whatsoever is the right timeframe, on slide 15-16 or you showed sort of the master schedule and a little deeper dive, will probably know where the master lease he is going to be around the time so i think one of the deeper dive schedules is going to to be when turnover is going to be ready for the master lease are as well the master we schedule is going to be so we can manage everyone's expectations. at a certain point it's a bus facility at certain point [inaudible] >> that's a good point. were part and parcel with the beginning to meet on a biweekly basis to stand up transition plan is developed and scheduled not only for the master lease but also schedules for activities related to standing up ac transit, greyhound, and track. so we party started to round out our parallel post construction or parallel to construction activities. >> both, parallel and post
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>> yes. absolutely. that's exactly what were standing up. i think a couple meetings ago what came out of the meeting was i think was jim patchett had mentioned those activities we need treated as a project and budgeted and schedules, and i think it's about spot on. we need to treat those activities just like a project. money, time [inaudible] >> thank you. >> thank you. next item in mdm. clerk >> item 7 is the citizen advisory committee update. kerry is not here to do the schedule. however, vice chairman warren post is with us but she's let us know there's nothing to report. so, >> okay >> we can go ahead and move into next item, item 8 public
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comment. we have >>[calling names] >> thank you. i really wanted to speak to you on the public's point of view about having a closed session before the meeting. because what that allows you to do is communicate to us what the result of the closed session was. rather than us having to watch a video later and find out what was announced. director gee i would strongly encourage you to reach out to your [inaudible] and implement the top 10 meetings. thank you very much >> mr. patrick. >> thank you. jim patrick patrick and company san francisco. i want to make a
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comment chairman harper's notion of having and easy, you're saying this is where we are going the larger picture. i thought the board shrug that issue off and i think that's a mistake. i felt a long time we been very myopic as how we look at the transit center and we need to go larger picture and design concepts location, what's going to go across the bay and what have you. i don't think we ought to be-i think the staff can spend the time on the 341 were 342 bus ramps but the board needs to spend the time how are we going to do with the larger picture. so, i believe we should have a presentation by mdc, what are they thinking what other ridership numbers what with this facility, how will it play in the future? not only so that the bus ramps or bus bays are not the issue for this board, but it's much larger issue. so i encourage the board to rethink that and to have a presentation from the mdc and to understand the larger picture of where we belong in the system. thank you.
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>> that includes members of the public that want to address you on that item. we can go at and moving to your consent calendar >> please >> consent calendar. >>[reading code]. your arms are the june 9, 2016 minutes and the approving the anticipated disadvantaged business enterprise participation level for that of the school year 2016-17 through 2018-19 and agency small business enterprise goal. >> is a motion for approval of the entire consent calendar? motion and second. any objection? >> the consent calendar is approved. next item, item 10
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>>[reading code] >> directors, this item will be presented by george pappas. from alternative financing and procurement advisory team. by way of background, we been exploring what is the best most feasible most effective efficient way to deliver phase 2 with the lease restrictive [inaudible] georges can outline the study and benefits, but it brings to the phase 2 would be various delivery options based on the phase 2 funding status and schedule. so, george >> thank you mark and lord. just for the record, i am an engineer but i'm recovering engineer. so, i just want to throw that out. thank you for inviting me back. but captured very much what we were trying to do here. i will start out
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with our purpose and goals. we want to make sure we understand the needs and characteristics. willie, the solution is to be driven by those needs and characteristic that if a change, then the solution can change but we want to start their as our foundation. we want to also bring in risks did this become very very important to any project but if we can mitigate those risks and transfer those risks properly, to the party that can deliver them the best we get the best value for tj pa. some of those medications and the solutions were looking for turn into goals and objectives. that's our check in. we want to make sure were meeting the goals and objectives. we are doing that there were doing the right thing. because were actually creating a value proposition that we are seeking. we also do factor in budget and financing and funding. how do those things tie together? of those timings affect the particular flow through the project also may provide a good direction that we can go in for the particular project delivery option. those things then have
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to all be assessed and have to be assessed against a criteria. so what will talk about that is the presentation goes and how we went about that but really, there were three things we want to make sure that what we provide in terms of this study was something that was efficient and very achievable from a determined standpoint it is financing let's make sure that's bankable. it's construction with make it's debatable beatable and bankable become important criteria is the market decides and doesn't decide perhaps, i does get indigenous but the one get this best bible. that isn't always necessary that you discussed but yes, those things tie to get. the best value on sustainable transit passes. that's related to be there for the time we want it and function
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and be flexible enough to address schedule in the needs as it grows throughout time. then, we also want to maximize where appropriate, the transferred to the private sector. so, we get then is turned that into a little bit of a graphic. this is kind of if you will are wayfinding if you will and you'll see this as we go forward. as we walked through it. that just is kind of a little bit of a visual. back in january of 2014 are the privilege of coming year and presenting to each and every one of these project delivery options. you will see these groups and all spring kind of how audit thinking was on that. but, what we did again, simple simple graphic to maybe articulate with the risk transfer comes with each one of the project delivery methods. so when we go from left to right, if you visit traditional design bid build we transfer more risk it is different things that can happen so that's allocated by the roles and how the private sector can engage. we start with a clean slate. so, this is an agnostic type of a table. then we look at the needs and goals and i'll show you shortly, how they fit
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in and how quickly they provide the right answer. so, here is the first one. the project needs and characteristics. a lot of work has been done on this. we broken this up into the echinoderms size. this is summarized it's a lot longer than what is stated here, but there certain tract ratings there's a rolling stock the way it fits into the envelope. the vehicle itself, the vertical and horizontal connectivity transbay transit center. the need to accommodate station platforms. the eis. all those things would looked at and we understood what that scope of work was as research to a valuate this. if there's a particular need we want to make sure we understood what that was. so we took some time working with tj pa and the rest of the staff to understand what i was. i laid out with construction. you know, we know
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we want a project that on-time and on budget get that minimizes claims and i should really the question become is a project delivery method that help in this and eight this spirit no one is going to solve them all we want to try to get as many of these under control. we also look at things such as synchronizing the work schedule. if the weight one project delivery method provides a little more flexibility. the bottom line though we also want to make sure we maximize the bitter competition. because if we do that rashly can generate the best possible value. that doesn't go without saying there's good quality. you want to be good neighbors with the community. all those things were looked at as well., financing and funding standpoint and those to me are two separate things, right funding is one of them but you also have to have a kind of a plan in place. we will talk about that as well the financing. how those things
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integrate become very important. we want to make sure, first, we have the funding plan in place. the funding is flowing that it is all. the projections are good that everything is moving in the direction we thought we would. if that is too, perhaps we don't need the extra, the private financing. we still need internal financing plan. you got lot of good people that sen. meant some other work. we work closely with experian on this to understand all those metrics, all the funding and all the as well, scott, all the dynamics that go into that. because the bottom line is, we do not want to incur a greater cost to the tj pa by going with private financing. that simply does not make sense. we have to make sure we understand that. as relates to maintenance and operation, again we start with a clean slate. we always kind of assumed that operations would be done by the rail operators. they know the training they know the schedule they know how the positive train control works and how
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communication was. the background, the backbone works and how they integrate into the system. but we were able then to evaluate and discuss with that really became very sensible to have the maintenance also be done by the rail operators simply when you think about this is about 2 miles out 53 mile work longer system in high-speed rail case and does this make sense to take that off? to incur a greater cost so we will talk about that a little bit but that got over bit but then that's what i'll say about that at this point. we also looked at schedule. we want to make sure that could understand how the schedule flows. when the milestones were projected. because we want to make sure, again, our goal is on-time and on budget. so is there delivery method that can be accelerated in certain cases were controlled or laid out in a certain way such that we coincide and super nice with that schedule to be looked at that as well. echoes of the
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needs and characteristics. the next piece we looked at was what we call the high-level risk. the risk report was done in 2008. it was extremely thorough. a lot of the risks if not all of them the majority of the risk, the main take. what we did is boiled them down to 10 categories. that represented on the slide you having fun to be. not one was any more important than the other. because at this point in time, we want to make sure we understood what was going on there. we sat then and revisited each one of these risks with working groups which i'll talk about in next couple of slides. really, what we end up making sure we had the funding, making sure we have good neighbors, access for the vehicles, the pedestrians, the businesses to minimize these disruptions. scope creep and
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making sure we don't have extra work that comes in that generates the next one cost overruns should we want to be strict on our budget because it owns the affordability model. what is the affordability making sure we stay within those parameters? schedule chicken and synchronization we talk about that. when of the bigger risk is really [inaudible] we got a very profile as you know. is there a way that one of these project delivery methods is historically delivered this risk transfer better at better now. we valuate that as well. the right wing party acquisition that's owner owner and but we have to think about when the property becomes available and how it becomes available highly articulate. do they build in the middle and worker way out because that's the way property is available were one and? so we want to make sure we understood that because having that flexibility again creates better schedule adherence and better budgeting. permitting is always there right and you've done a tremendous job of getting the environment don't get you're nearing completion but there's other permits that come along
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we want to understand what those risks were. the utilities are always something in the public right-of-way. there's a lot of spaghetti, if you will, of utilities we want to make sure we understood wasn't anything that would heed the project in any way. the last thing is the system integration and ac transit coordination. we would do with two real operators in this facility and how that can integrate in the system becomes a risk to make sure from a schedule standpoint a conference of overview to make sure were not incurring issues downstream. these risk then turn into mitigation strategies. if we can mitigate these risks then we actually, whether the owner does it absorbs that were the private sector does it, well done is created) a value. but those medications become really goals and objectives in a lot of ways. so when we were doing our risk and assessment in our recapture, we sat down and we said we have to understand with the goals and objectives are here. what are we trying to target so that this project delivery options study targets back in and hear what you'll
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see is what we call the clusters. this kind 10 of them i think or so that actually gain weight on our evaluation criteria get how we actually evaluated that. everything that you would one would assume anything from scope to legal matters in this thing be cured when delivery method versus another down to the funding and the project finance and the tunnel and some of the characteristics around that. no committees while we did equally at this point in time. i see think it's always important to get we did place an emphasis one over the other and we do that very consciously. because we wanted to make sure that we look at everything kind of on an even keel. there are certain things that perhaps would be more important but i don't think in any way that changes the outcome. so we want to make sure we told you that in our study. so, really what we did is then generated from that our
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key goals and objectives. there were seven of them. each one had subcategories underneath and it was probably a thing 35 different categories. or listings good really, we want to and this is what we met with the staff. we met with gigi pa. people work on the project for years. and really engage them and really kind of challenged them to tell us what are we trying to accomplish. so, these were the kind of the seven become for the community impact and facilitating engagement. don't let that go. make sure that's an ongoing thing because my experience in some of the other projects in transit and downtown areas, if you continue that you're better off than just closing the door. we want to drive cost certainty and we want to make sure that if we get a guaranteed maximum price one was project delivery methods do that better and can we lock that in and get a little more certainty so that we don't have to dig into our contingency is much. we don't have can we get those are guaranteed maxes? we want to
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maximize the competition and value and then also sings down some into historically businesses as will get this a very diverse project how do you engage them how to get those people in there but you still get the good value? partnering between big firms and small firms and through that knowledge and transfer also equally important. we want to drive design and construction quality. we want this to be a sustainable asset. that was one of the goals you always want to hear but we want to make sure we understood what that meant in terms of wasn't just construction. it wasn't just design. balance the budget mind you, but we want to make sure that we understood and we had a goal that was orientated that is the way we can get that eluded better one versus the other. properly and mitigate the risk of the user thing i do a lot of spell a lot of people suggested that risk and moved to the private sector they put a premium on it and as a costing 10 times the money they thought it was. so we didn't want to do that so the word we use his responsibility. so that it actually treats again, a
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little bit of a broken record, the value proposition and generation of that. what we are seeking. driving schedule circuit we are standing we get into phase 2, this work seems very heavily with the schedule and making sure that we meet those milestones and getting things open on time become as critical as anything else that we are doing. because this is an integrated facility. the last thing is, we want to make sure that we have something one of the goals to do good procurement that was fair and transparent that the public looks at that and says, yes, you guys are doing things in the right manner. that we can understand what that is, what they are. the next thing we looked at was project cost and value. because as i said earlier the funding in the financing they really can integrate with a lot of what were doing. to me, this is a lot of ways most fascinating part of what we did. we went first to the cost estimate and is what was presented in june so we went back and looked at
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that. what we saw here was a total program cost of 3.9 billion dollars. with advertising, though, which i think is really where the power comes in is we look at the potential funding streams working very closely with scott to understand where these commitments are coming from, where the projections are coming from and what does that mean just all are allocated what is the net? what are you actually can have in your hand when you spend that? then create a financing plan around. that all is being worked. but we were able to see here, and i think it's powerful, is the 3.9 billion fits within the net proceeds rejection of anywhere from 3.3 titan 4.6. this was our first indication am i here,
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now we do not need a long-term financing plan. we did not-it wasn't necessary. we could still do it but it's not necessary and absolute we have to go to the private industry to people have them finance. i will tell you, we do reserve the right and we left the short-term financing in solely for the reason that one of these funding sources was too loud for one reason or another, we would have some flexibility and i'll talk about that as we go forward to the next part. which is a project delivery and evaluation. so taking those goals, those became part of our criteria. we first want to make sure before we got into the nuts and bolts of it, but we had our understanding and our some shins all kind of written down and under should get now the core mission that we were really able to kind of lock on to is it's your job as tj pa in our job as well, to really to plan and develop and deliver phase 2 along with the project funding that comes along with that any internal financing. the maintenance of the tunnels and the rail infrastructure as well as the operations will be retained and performed by the
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rail operators for the just the scale of economy and the fact they're already doing that. that became very key understanding as we move forward. tj pa while some maintenance responsibility that's really kind of the routine and integration piece that happens with the public spaces in the transit center. the risk assessment, 2008, it does need an update. it doesn't change in any way in my opinion the high-level risk that we had the goals and objectives could they still hold true because essentially the same project. it's always good to kind of updated as we move forward to make sure we captured everything thoroughly that we have the right kind of impacts. we also, then, overlaid everything with a series of
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case studies. we looked at about i think it was 16 of them and they're in the reports. in appendix c. some of those happen to be personally involved some those i talk to other colleagues both within the firm i work for and other forms. we looked in north america mainly in the us. we wanted to understand how they deliver their infrastructure in the transit space in particular. not just my we stated we want to be transit center because that would inform us what did they run into? what were the lessons learned and are there things we can bring to this project? we can have evaluated along by criteria as well. lastly, there some response ability matrix work in governance structure that's very rough right now. but we look at that that needs to be there remains in progress. it is to continue to evolve. may change our thinking. that's why this is a study and not necessarily a hard report. but really kind of informed us as to who's doing what. so, here i am being an engineer i am sorry. i'm still recovering we did a flowchart.
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we figure that was kind of the best way to articulate this. we grew things into categories. i'll go from bottom to the top if i may. group 3 was really the long-term. when you have long-term finance, and long-term maintenance, those are really kind of the p3 solution. those two things integrated if you don't have the m and you have the big capital f you don't have the need to consider-we scored it we evaluated we made sure that was fully con forget we look at three different kinds of [inaudible] from the availability payment which is common. as the way per city was done good we looked at a concessive subsidization which a transaction which stayed in new york laguardia and because that process observation. those are tricky because the pfc become very you can argue widows and the full concession. which is very difficult to the revenue stream is not there to cover it. moving into group 2, those of the short-term solutions where they we need short-term financing i spoke of earlier. maybe we need we need
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to start a cover mount of money, two, four years without money comes on maybe private sector can do better we want to retain that. let's look at the db plus m. at the time we did not know where the news was consistent we want to say this look an option will be a limited amount of maintenance. sometimes the small f is not capitalized because it indicates the short-term aspect. group 1, was really the designed the building. the core of what you need responsible what your goals are and resided right there and three methods traditional, see mark but see my with the cmg see with a gunfight mack's truck conjugate we want to make sure they'll be a little bit different than maybe what was done because guaranteed max lee lockstep price in any don't negotiate as much. we also look at design build. what we found though again as i said earlier was that the long-term finance
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because the funny looks very very strong and healthy, it looks like it's all trending in the right at least rain oh all trending in the right direction, so the f dropped a. the o operations. that kind of dropped out. well if the maintenance is done by the rail operators the m drops out. so really it became the focus for us at least for this presentation today was we want to focus in on those solutions that really captured the there d and b. those would be the group ones that we added in and kept and retained a small term f. the design build finance. because what we want to again make sure at this point in time the great work people are doing the fighting is still kind of being committed the letters are starting to the discussions are happening and letters will be forthcoming. when we evaluated the evaluated in two separate ways. independently. we look at
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it from a quantitative standpoint so those something like 24-23 different goals and objectives were scored. these are the categories of those peer, quantitative. the pure number standpoint what we found here was that design build scored the highest. because it maximized the risk transfer and really helped us on the cost. storically, ben design build has been engaged that's really been kind of its, as well as delivering things on schedule having a really good. it's a good way to transfer that risk responsibly and be able to have that control. the only thing i want to point out is design build finance score slightly higher but that's only into categories. that's in the cost and the schedule. because when you have the private sector with a little bit more discipline. those lenders not the guys from chicago like me, but they want to make sure they get paid. that should put a little more discipline on. doesn't mean design build-i'm
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sorry-doesn't mean design build doesn't provide the elements that are not quality delivery method did just that design build delete meets your needs and goals are little bit better than the other ones. hence, that scoring. we then looked at something we think is a little bit more tangible if you will. something a little more human you can touch it. it's not necessarily a bunch of numbers that are out there. "five-we jointly develop five qualitative criteria. talk to the funding, it talked about is this market tested as is delivered and used in transit infrastructure work tunnel projects? because we do have this is essentially a tunnel project. how does the industry look upon this. is this buildable and bankable? will they come to the table we want the best of the best that we want the best contractors and designers to come to the table because that will actually bring the next had a great, which is higher-quality
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greater innovation, greater best practices. we want them to bring again, the best they possibly can. there's a lot of new techniques out there who want to be able to test those out. then, we also want to make sure lastly this a quality thing, to protect the investment during the maintenance term. it scored no but 01 make sure i want explain what no it's not that they don't deliver quality that the p-three delivers it a little bit better because the finance becomes the behavior maintenance becomes the behavior two. it doesn't mean these project delivery methods don't deliver and don't protect the investment during maintenance term. it's just that the p-three does. it's comparative from that perspective. to summarize it, we did overall ranking. the overall ranking kind of indicated again design build is really right now, but i would say it's suggests that the direction thate need to
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consider in the future. when the board makes the decision on the delivery method. it solves most of the problems because, again, the s and m r-l. you see those rank as number one and , to number one but really its own. if you don't need to short-term finance design build if you do you have the option of the design build find just the p-three are not captured. because, again, just to emphasize that point they're not included but this study is flexible. the study includes scoring on those. if those elements get brought back in to discussion to different kind of change we are ready to go in no need to do a study anymore. it's all kind of flexible and presented for you. so, really inc. i'll conclude this part of the presentation with just the next steps. the first few of those first five those are what you've seen in june. they interface very directly with
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the project delivery 30% it's always good to prove you can do the project and how the sometimes call proof of concept this fits within the envelope and works. we want to make sure we update our risk assessment. that program enterprisewide, good we want to make sure we continue understand what happens with the estimate and the funding and financing plan. as well as finalizing at a later date the board so chooses, with the delivery method would be. some additional validation efforts that we think we need to do that really kind of continue to inform the board would be to make sure we get those written commitments on the sourcing and amount of the funding. right that can be critical. that's the time sure you start similar federal applications. if to show those kinds of things. getting all that him. and work is being done on that right now. it's not as if it's sitting but those validation efforts will check in with that. we do also call the space
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imperative analysis and what that essentially is as we look at as we transfer the risk to the private sector, through one of these delivery methods, is generate the value we think of. there were not pain those premiums and we transferred in the proper way. that's about the space imperative analysis does and ties directly to the risk model done in conjunction with you the last thing we recommended even a while go and look bringing it up again is to embark and it's too soon to do this but this is the future, in market some. it's an industry outreach kind of let the industry know what's going on and be able to bring again the right kind of team to the table. with that, thank you and if you have any questions we happy to answer them >> any questions your? ed. >> i guess it's more comments. first, i think it's extraordinarily important that we figure this out. this is
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obviously when the most important decisions that were going to make is an agency about phase 2. so i commend the staff are continuing to advance this work. i will admit, do not read the report i read the staff report and now seen the presentation, my reaction is that i think it may be a little premature, and it seems somewhat high level and maybe a little bit superficial. i think to say that we done analysis of the needs of the project and we wanted to be on time and on budget and with high-quality materials, seems pretty generic. i don't know what cconstruction project in the world is and how those needs. and likewise, we did the study to find out where we want to account for committee impact of cost certainty. it seems like kind of generic approach to looking at a very complex
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project. i think it's also looking at in a very it seems looking at a pretty monolithic way whereas i think the actual program of phase 2 is composed of a lot of different elements from utility relocation to different parts of the tunnel construction to the connectivity to that transit center. so, i guess it feels like this is too high level. maybe too early and too monolithic to be a lot of value at this point. i think as the design work on phase 2 advances and we get better understanding of what the sequencing and staging and traffic and other impacts are going to be at a level much deeper than currently in the environmental document,, which is also very high level, i
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think we better position to do a more thorough analysis. i guess, just to add the recommendation on validation, we do have here in the city but were currently doing one tunnel project the design build public works has a lot of experience on construction manager at risk. delivery, the airport is doing a lot of design build. so, we have a lot of local expertise that i think will be helpful to bring in, bring to bear as well as i don't know if the fta project management oversight consultant has been a part of this. i think would be good to bring them in the early the pmo ci think would be helpful to weigh in on this. so, i think it's helpful if you. my gut is
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design build might be the right solution proportion this but i feel it's kind of early and too much at the service right now to be a whole lot of value. as were closer to 30% and a lot more this detail known and really look at the different components of phase 2 to really make a informed decision. that's just kind of my reaction. maybe i am missing for not having read the report also detailed but it doesn't come through in the powerpoint and the staff report. >> report does go into greater detail. >> the report and this is a first step looking what's out there and work and work with could not work. but initially about a year ago we were looking at p-three and approach
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by people to submit de-three should be looked at. we initiated a study saying trying to figure out basically bring any value to this project. to this report were kind of realizing that this is not a p-three project because it does not have the maintenance and operation component. the items that were zeroed in on right now is cluster entity. minimizing risk. and similar what the central subway is going in to me outreach and minimize impacts to the community because were the central subway is can be doing would be impacting a lot of businesses. impacting travel in public. so taking the p-three components is there together delivery method we should focus on that would satisfy these goals more than any other? so, that is really big the first step added. rector peskin i agree with you. it's very early for us to even consider selecting a delivery
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method the next steps will push that up till next year because we have to have a good funding plan to figure out when the fundings is coming in this funding plan we can figure out [inaudible] they're not coming for a long time. >> method or methods? maybe you do something different to move utilities [inaudible] to build the tunnel. the different construction methods are currently proposing a different parts. it could be those are done under different procurement methods >> absolutely >> i think there's a lot more work to be done understand what the design looks like before making this decision. i think it's right at the surface. i would agree kind of on the surface pulmonary doesn't make sense to paper something for finance. i think the initial
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narrowing seems to make some sense but i think world long way from being able to get determinate on anything on that >> yes. noticing this report highlighted to us is that cmr was widely used in the city it's never been used for transit. so, that's another thing >> is been used for service transit. >> okay. so, that's another consideration when looking at but again this is [inaudible] >> director gee >> thank you for the report get we been unusual for that officer expense and different delivery methods like you professionally i was able to champion the cmg at uc berkeley, which is now the uc system for building. as well as i showed up in time to private 80-1000 which youth you have been dealt about to make colleges and k-12 to use design build further campus
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facilities. so there's a rich etiquette, experience your of different delivery methods, even for interns who didn't stay, awaken the engineers, if we did design build f they need to understand the present value as director reiskin was people know how to do that kind of math. does i think the drive in segmented target the legislator to understand the present value. as the assessment moves forward and design things slide 25 the next apps is really critical. my comments are really mainly, as you dive into the next analysis, the analysis should include organizational culture. because if a team is used to doing design bid build and its design build your gap incompatible mix of personalities, cultures, and dynamics. i think director reiskin suggested it seems to be a lipid trigger probably a
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peer-reviewed and we get to the point of the board of making a decision. to make sure all of our stakeholders by in to the delivery methods. i would hate to get to point where we pick a method our stakeholders and partners jumping at the last moment and say, what the hell are you doing and why? because we've seen that happen with other decisions. we don't want any latecomer same-we want them involved earlier. i guess, from my standpoint design build does give the opportunity for the greatest construction industry innovation. while the engineers may know a lot they don't always know it all were what's coming and so having that builder at the table were leading innovation is of great value. i think that's all i want to add right now. other than come i think doing getting
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to 30% pe isn't important. amazing, better understand our funding. those are all critical factors to determine what is the best or best mix of delivery method. will be much smarter a year from now. >> [inaudible] >> i would just add director gee and reiskin is that a lot it's definitely very informative. also design build is probably gives is the option but i think it's a little early to assume but, as we're seeing with many of these projects, and especially in san francisco, a lot of variables. having the peer review and really certain documents to a certain stage i think we'll start to suggest the best way. i also would continue to encourage to gmp and any of these, any delivery
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method that i think we paid the price from phase 1. >> yes. if i could just take might yes this is just the starting group this is not the ending point at all. it just became evident that may be the p-three was not the right way to go. under the circumstances. that's why we included everything. report details as much as we could. we whited out, shorted here for this presentation. try to provide you the most flexibility at this point in time. because we understand that things will change and things will evolve. >> i agree. p-three does not make a lot of sense with this little part here. there's nothing to offer the first p. or the second p the private. within the for them? on a bigger scale things gilroy to san francisco that's a nice p-three. the other thing but i
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don't understand is why-right now, at this campaign level outlook and we got a kool-aid pocketbook. we've got to do with the to concentrate on building additional funds. that has to be everything. everything that i would like to see coming in front of this is towards funding face. it's that sort of thing nancy whelan did for us 16 years ago when we first started on the whole thing. okay, how do you start to build these things. we got that last time with the idea of caltrain and not an excise, but surplus on that and what that would value out out and how that would work. but, i too,
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think-the other thing that bothered me about this was one line on one of your slides number six, a layout that minimizes the length of the tunnel structure. i mean, that tells san francisco planning to him and to go to help with their ideas. i did. >> no. maybe that's misrepresented. same the design we have right now has minimized it. >> i know. right obviously, there's people moments of the city that are trying to look at other things that the only thing that all the alternatives have a slightly longer tunnel. so when we put that in there the things says san francisco, forget about it. as i say, we've got two rocks here we are trying to get. one is, we have got to get funding as early and completely as possible. that is our charter. we've got that up. we get to do the things necessary to get some funding interest and eventually funding commitments. on the
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other hand, at least i have a bias here, that cities, especially cities which are also counties, need to have a lot to say about their land use. they need to be deferred to when possible. so, that's the tunnel we have. you had to continue on this path. we get to do that funding. at the same time, we have got to to the extent possible allow san francisco to figure out what you would like to see in this brand-new sort of thing. so, those are the things that we need. it's more political than design but with veganism design around that. one of the things i note from all this is his key decisions right now were key aspects in those things between three tracks and two tracks coming in. what some of those ideas are around that. that's got to be resolved soon. but every now sort of comes in second and brandon. with all
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these other things. so the idea is can we actually do a project that allows flexibility you are talking about. when we know we've got the commonality of these so far going up into that without delaying anything. that's the trick. we don't want to delay. we don't lose the link of your we've got that and we got a charter. at the same time, we don't have the three-quarter billion dollars we hope to have when this whole thing started out. this would've bootstrapped us into phase 2. so that means we have to rethink the whole thing. this seems to be idea, yes me that three-quarter billion. let's charge. we don't. i mean, we've got bronze money. and everything and you know that's about it. we hope to have that. >> if i could just clarify, this is just a first cut at how
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do we-it's a process and how do we arrive a delivery method basic get my feeling was that by the time were done with a 30% risk management, risk assessment, with a funding plan, come up with a cost estimate, that we were ready to select a delivery method may be a year from now but this is just a first step. i can assure you director harper this has nothing to do with the other studies going. this is just basically dpx alignment. how do you take steps arriving at a delivery method and it's not anything set in stone here. just for information and discussion. more for information becomes available from our 30% design and so forth, we will continue to look at how that impacts the selection and sometime next year will provide you more information so we can arrive at
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a decision point. >> the other thing, i don't know. i don't think we need, in my opinion, to think about it until for some time. he barked underground people the pedestrian corridor.. item meeting with but people last week. three directors were there. every time i mentioned that connector, i mean, their eyes roll. they just don't want to think about it right to get their just got so much on their plate that they've got to deal with, that the transbay terminal to embarcadero connector is just, they'll be glad to as things things come into place kind of say, okay now how would that work, but i
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don't think i think would just waste your money doing this study about it right now. because they are just about ready to even think about it. >> yes. i think some commissioners from amt see it different. >> yes, they do >> they're saying we the region are investing a lot in this facility in san francisco get we want to make sure that our other main transit connector from the east bay to san francisco connects to it. so, i think that we very much need to continue advancing this weather it gets done, at phasing relative to the tunnel is a question but i think that a big picture regionally and again this ties back to the core capacity issue, i think that connectivity for part two the station is gone to ultimately be important. >> it may be. the thing is, the question the board directors bring up is, one, who is going to be making a move. not coming from the east they get there all already get part
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on the east they could not having any ac passengers transferring two parts. the question is, now coming up from the south who's transferring to bark when and why. then, the issue is, well, what is the difference. much time savings to you have in making underground people mover versus going across the surface if you have a couple of pedestrians scramble intersections between they're going that three blocks were going those for berks? so, those are the things were going to study it i think we should present to the part board and say, look, here is where the passengers would come from. here's why we have any because there is a connection need and then, too, here is the study to show what the savings might actually be as compared to coming out of the terminal going up. i understand what you're saying at mtc. i've heard that too that there are some commissioners that don't but i think some fundamental stuff has to be done there, especially if part is can it take this seriously. okay.
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>> good morning director did i does one provide one click or vacation it is important to the discussion going forward. between the [inaudible] will remain for phase 2 and property tax increment that available for phase 2, and several other sources we ran through last month, we two of existing committed funds the range from 600,000,000-8 40 billion debate on what assumptions you make but how much [inaudible] will remain. that is in that three-quarter billion overview. again because is important for discussion. we do about lined up and forthcoming commitments and bay area and with pfc we talked about. >> so the glass is half full. >> >>[laughing] >> okay get any comments on that? >> call unix item spieler >> yes. >> item 11,, >>[reading code]
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>> dennis will present this item >> good morning. one more time here. so, please because i'm before the board. it's been a long time coming. this is the last piece of the project labor agreement so this a very important element happy to have. joining me today is john holzman who is our faith in the legal counsel for labor issues for the tj pa. it's got all the institutional knowledge. i'll be here for any questions regarding this item. also join me up here is to help. he's the teamster local 852 representative that's in part of this process as well in no say a few words after i've gone through this as well. i know why the package was very voluminous package. there's been a lot of items here. i would have had to do for this
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presentation is just take it down to nine bullets so try to summarize what's going on what happened over the last quite a few years. in november 2011, the tj pa entered a project labor agreements. having birthdays one and phase 2. during those negotiations, the teamsters and tj pa disagreed whether the autopilot rocking element would be appropriate recovered by the pla. so, after a side letter was written and approved by the board, the tj pa and teamsters arbitrated this issue. as we went through the arbitration process, great with the process came through and the arbitrator give a decision it stated off all talking me we would be covered under the pli. the drivers who are independently contractors, and owner operators, who are not employees technically, when not be covered or should i be covered by the pli. so this decision led to many different
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further discussions with a classification of a bona fide independent contractor is not covered in the bona fide employee who would be covered. the teamsters asserted some of the softball owner operators were not legitimate independent contractors. so how can we address that concern. so it was an additional levy going to the nuts and bolts of that arbitrator's decision is picking down to what we have today as the off haul trucking agreement that provides for elements as part of that and the mechanism to ensure drivers are appropriately classified. this entry through a questionnaire. and then a trucking coordinator that was basically follow it through the single focal point through the entire process. then, also, it provides to something vital, an option for teamsters to challenge classifications to a grievance type procedure which we learned-another elements of the pla it's important to have some steps were we've had on other ailments of the pla worked well when you set up
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rules and in this case we set up rules sophie do get to a situation that he knows what to do. that was the important elements of the trucking agreement. this agreement is similar to the port of oakland even though each one has their own nuances been separate, unique types of projects and areas but it is similar what's between the teamsters and the port of oakland. this agreement ensures project work continues without disruption which we learn the other elements of the po like having vital. the pla remains consistent. there's rapidly changing state and federal laws pertaining to off haul trucking which essentially the agreement you well tone of trying to be fair to all parties. it doesn't include one or the other but make sure it's there in bona fide one way or another. so, with that, i turn it over to stoop over to provide any comments from the teamsters element of support for the agreements. >> good morning. stoop outward construction division director teamsters local 853, chairman construction committee. i try
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to keep it short and sweet. we would encourage adoption of the and execution of the letter is negotiated. >> that was short. >>[laughing] >> usually atop a longtime >> with that we do have the recommendation to authorize the interim executive director to sign his agreement since the teamsters have a re-signed their part. with that, that finishes the presentation. if you have any questions? >> is there a economic implications to the project one way or another? is an issue with respect to economics? >> directors, yes. john holzman. potentially there are. because, off haul as it is being performed in many circumstances these days-and there's a dispute whether they're independent contractors or not, but by owner operators, people report to innovative contractors is done by the
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load. it is not paid hourly and is done through brokers. if, at some point, this work ends up being done by employees of employers in again, to be clear, because we've had many discussions about teamsters whether that's at the the case now, but if it is, it's hourly and one of the big questions that hides behind all of this is there's been significant change in prevailing wage law with respect to the application of prevailing wage to owner operator off haul truckers. it was decision a few years ago where an steward can tell you more about it, in which the state in essence said pavilion wage should apply to off haul trucking regardless of whether it's semi-independent
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contractors. the difficulty is eir has not established a rate for people who own their own legs because the complexity of it obviously, there's heavy wage rate in there because it also tires and gas and truck etc. so, the area is great much in flux and actually stewart is one of the great experts on what's emerging in that area but the bottom line to your question is, yes, there could be a cost impact. one of the things we want to do because we were reaching this agreement as it applies to this agreement only applies to phase 2. does not apply to phase 1. at a time when we knew what that phase 2 could be out any number of years really. that the law was changing fairly rapidly. so, the way we wrote this agreement is to write it around in essence, what the law will be. so, if the law changes and we change and the concept from an economic perspective is whether this turns out to be true i don't know, but is that
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if other people are paying pavilion wage prevailing wage then we will to. so in theory we should be in line with the market at the point at which we build. it's also important to mechanize the agreement has a provision in it but if the law substantially changes, either side can move to reopen the agreement. so, number one, were trying to type where we think the law is worried to go into the flexibility select the law changes the agreement will continue to apply and then, number two, we do have that opportunity if we need to. >> when will the first talked with the first load leave? >> i'm going to- >> what is the anticipated date for the first truck with dirt, with clay leading?
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tellis, mark the ayes have it. when is echoed up and spewing >> according to my schedule, it's the middle 2020. >> all right. why are we doing this out? >> very good question. the answer is, when we negotiated the original pla, the teamsters wanted to be included in the pla at that point. we actually asserted at the table, etc. why don't we wait. that was not acceptable to the teamsters. they would not have signed the pli. if they had not signed appeal like we would not have had a pli. so, to be blunt about it we agreed to that and we agreed to allow the teamsters to decide when they wish to arbitrate this dispute. they could have waited or the could've moved sooner. they choose to move relatively quickly. it to arbitrate that
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disputed that is the language of the pli. at this point we now have an arbitration decision. the arbitration decision is a little bit ambiguous in certain respects, which is why we been meeting with the teamsters to come up with a structure to understand it, but the bottom line is this is what we agreed to do. >> can we argue that capability if not impossibility of doing that at this time? i mean, i know the agreement says what it says but my gosh, you're right. this is a very, you know amorphous thing could i we can do something 2020 and outward sign an agreement i can see why it has to be flexible. i don't know what it hurts? >> when configured inside for second and stuart make a prounion subject with the unit would say is, listen, they have not done anything to interfere in our building of phase 1 despite the fact they did not get the benefit of this parking. so, we have achieved a very significant benefit for
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the public and for this project by not having bigger disputed by the way, we did up labor disputes with the teamsters going into this. so, that was a really critical issue. that would be the counterargument >> we took out a big basin. without the dirt? >> i understand it will not a construction guy was done by brokers. using-in phase 1, yes >> so that was not a problem at the time for some reason? >> to be clear, the teamsters agreed not to cover that work. the reason why that occurred because of the timing of when we reach the agreement on the pli. the basic principle is, you can't cover work in a pla with a pla wasn't going to be [inaudible] and were still in the middle of negotiation. so, you know, the teamsters got taken the position to stop everything. we own that work
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could work in a ticket you and not make it it it they did not do that. >> director gee >> just because i was audio 2011 does that cover phase 2? >> covers phase 1 and has two and other any other subsequent phases, god help us >> >>[laughing] not be here for phase 3. [inaudible] so, this is just to catch up for the pla and executed? >> that is correct >> [inaudible] >> detailing and fun and good >> i appreciate the teamsters for their cooperation as i understand they could have stopped were the could've been a work stoppage or labor disruption and we work together to try to get to this arbitration decision that is democracy o'clock or, but it is
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moving forward progress with opportunities for adjustment as we get greater clarity would have to go back to the table if it gets fuzzier. so, on behalf of myself thank you as a new director to the teamsters are playing nicely together and i'm glad were here where we are so we can move forward together because there's going to be a lot more direct. >> we had actually realize that the majority of the work was going to go on in phase 2.. that's why we agreed to hold off on the applicability of this work until phase 2. just a little bit of background on-i told you he didn't want me to get started talking-but a little bit of background on some of the confusion on the rates and so forth. prevailing wage rate per write applies to all workers in the execution of a public works project. that doesn't matter whether you're
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an owner, owner operator. if you're doing work in the execution of the public works contract. we are it gets confusing, when you're talking about with an owner operator, is of two different aspects of it. you're the rate for the human being and you have the rate for the truck. that's where gets muddled. there is no legal rate for the trucks since the trucking was deregulated. that's why there's some confusion on that. the human being aspect is indeed set by prevailing wage rate is that by the department of industrial relations. >> all right. anybody have any problems with doing this? for approval? we have a motion and second. without objection, >> members of the public want to address on the item? the enemies unanimously approved. item 12 is a presentation by the peninsula corridor joint powers board on the caltrain modernization program. >> hello. my name is casey
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johnson with caltrain. look into my notes i think is been roughly a year since we come before this board to give an update on the project it without was timely given all the big milestones were hitting. i'll give some context where we are today with the system and what we printed the list the caltrain modernization program. i'll be pretty quick because i know this is been a long meeting, but we have some important statistics four to highlight with the system looks like. so, inmate we got her annual ridership count showing once again seen another dramatic euro ridership growth. last six years caltrain ridership has nearly doubled. only decline we seem is in 2010 with the recession that we had. there's many way to look at the capacity impact were having our system. this is another one. this is showing we are very full trains. on the far right-hand column joined
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percentage capacity at this is taken at a little ridership month so expect to see even higher numbers than these on our trains. we also have a unique system where were seen this in both northbound trains and southbound trains. so they are full. there's people standing and the traditional commute is not. about 60% of our passengers are going north but at the same time in the morning 40% are going south. were seen similar numbers on both sets of our trains going north and south and this is also unique for commuter rail lines. they don't normally have that. we hear a lot from writers but we also hear from business. i sure this slide to this group before but the coalition is still strong. the caltrain commuter coalition formed in 2014 made up of the businesses on this slide and others. they participated with us in advocacy for the
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modernization program. they really understand the need and the service that caltrain provides. over 75% of our writers they caltrain to get to work and 60% of choice writers which means they have access to a carpet or choosing to make take how to meet you can imagine of 60,000+ writers that right caltrain were pushed onto 101 and 280 the congestion on those two main freeways would be even greater than it is today. we are doing small things to try and alleviate some of the capacity increases we are seeing. we put use the diesel drained out onto the system. if you look at trains you'll notice them because they are the ones that are blue and what we do not paint them because we want to get him out on the system quickly. there are some constraints, though, by adding these diesel trains. we can manage the trains we put out there today but we can't continue to add diesel trains.. in the future, that with you wrote some the performance capabilities of the trains were diesel locomotive the push and pull even more weight eventually, that would make the
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schedule we have today and some of the constraints we have with platforms not feasible. so, this is a short-term fix and what we do want to look towards in the future is electric occasion. the build that foundation for a much better more nimble system. one other point on this is about our aging fleet. not only are we trying to maximize useful life of our diesel fleet is old, the. roughly 75% of the fleet is over 30 years old. it's reaching the end of its life. when you can need to push them out there in overall them as needed, that speaks to again these are short-term fixes. the long-term fix and foundation is electrification is what's needed. with that focus a little bit on where we are with the project and provide some updates. it's made up of two main project. you must pcp and the construction been completed and when the testing phase and the focus the presentation of electrification project where we are the milestones and moving forward with that. again, the project description is where we are with caltrain. but that's on my caltrain. we serve all the way to go about it
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corridor on by caltrain is being san francisco and san jose. that's the portion were doing these improvements on. we putting electrified system which is overhead wires and poles. both be compatible with future high-speed rail and buying brand-new electric trains called electrical multiple unit will be switching of 75% of the fleet. when the service i will continue to run seven 9 mi./h which is what we do today the big thing is on the server side. we will to increase the number of trains we have on the corridor no speak a little bit to this but will have a little bit service pattern when we have electric trains. we will have a mixed fleet service and will have tenant service when we first started 2020 at the tenant service ace capital corridor and amtrak inflate the currently use the system today and in the future that it was right underneath the wires.
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this significant benefits which this project. some of the oddest ones come from the environmental side. the greenhouse gas reduction in the pollution reduction. some things people may not think about is a reduction in engine noise when you go from electric train to a diesel train. we expect increased ridership and some projections on some of the job activity they'll be created from this project. this is really a slight that's the threat service part. this really will be something that weighs a new fundamental foundation for our system. we will increase the number trains we have for our but what's even more exciting for some folks is the weight we can change the schedule. and start to distribute some of the capacity that we have two different trains. so we'll have some options. today, the beatty board is the fastest most popular train to go some san francisco to san jose in 60 min. with a letter trains we can do that in 45 min. where, if we want to keep that same time which windows competitor driving instead of six ups we to make 13 stops in the future. then we can become more people
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on the weight answer to carry more riders in addition to having more trains on the corridor. we have one example of a city that i know is dear to director gee's heart but the schedule is up in the finest. we have the capability to make these changes. the schedule we further defined in the future we get closer to opening the project. i spoke a little bit about the need and the reason why were doing the project that could all get down to a little bit of the some of the considerations we have as were going forward with actually procuring these vehicles. we do have a contractor, but before we use about a two-year process of going through a variety of stakeholder feedback on some of the considerations we have on this slide. the board to decide we would continue to have onboard restrooms on our trains could be less than what we have today, but still have them there in times when there's incidences and special events. we will have additional doors on the train. there's a slide at the end of anyone needs a
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memory of the conversation we had with that. that allows us to not preclude future decisions with high-speed rail and caltrain for level i. it would built into the train designed but they won't function with the train opens. we will have seats in front of them but a future point everyone to use them be able to open them up and make the proper adjustments at that time. we will continue to carry bikes on board. but there's an acknowledgment and more work between now to improve the bike parking at stations. there may be some people that don't need to bring the bike onboard and free up more space space to stand and fit. right now, were in the midst of a bike parking management plan and behind that we have some capital commitment so that we can implement some of the recommendations that come out of that plan. over the last 2.5 years we've got over 10,000 comments on these different elements. this been a lot of public feedback that we've had to date and respect are going forward. that we have a car builder onboard will start to get to the details of more than designed the amenities, the folks that want to touch and feel and get an
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understanding of what the vehicle will look like. until this point within focusing on the major kind of size and configuration elements. here is a cost and funding breakdown of the project i want to thank several of the members that sit on this board, which their agencies are helping to fund this project through a variety of sources. we do have a plan now and confidence to move forward with the project the bids in place and with the funding plan outline. now we can reach the fun part of. we have an updated schedule. we complete environment for clearance in 2015. the board just last week awarded contracts to two firms. the firm to build electric vehicles and a firm to put in place the infrastructure. so, they wanted a limited notice to proceed love those two companies to go forward with design components. in the spring of next year we start to have a full notice to proceed in that way contingent
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on the fta full-time grant agreement with respect to get it within a positive conversations with them we been in the president's budget. we were awarded funding for mustard stewart a good place for that. then, when we look ahead with that wrought the first passenger rail service 2020. it will be over several months but will roll out the rest of them but that the first time people will be able to write the new electrified system get excited about where we are in charging. i less like the rock is just acknowledgment this is really a foundation for much more to come to the corridor. rick said i was can happen with ptx and working closely with high-speed rail in the blended system but there's also additional improvement that caltrain is think about. we know there's more capacity demand and need in the region and we are thinking ahead about that as well. so, some of the things were looking towards is a full electrified fleet the project is 75% not conversion replacement in the future we do want to be fully electrified. the longer electric train. have
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level boarding. it's really the initial planning and funding efforts are underway. were laying some of the foundation such as in our vehicle procurement with an option to buy more electric trains. if those funds come in place, we can roll them out. were starting to build that foundation rideout and i'm sure we'll get you many more people but an exciting time that can take place without that initial foundation with electrification. with that, happy to take any questions. >> i would just add great presentation it great to see the progress. just a reminder this is why we are doing by the agency was created get wasn't to make a nice bus terminal which we will have the ticket train service to downtown san francisco and caltrain electrification project is really paving the way for that. it's great to see it happening. >> if you retain some diesel service, though they come through a tunnel to be, can't
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they? >> that is correct. >> at the soonest this schedule you could come into the terminal with 75%-is the idea until you on of any electric service until you get that 75% level good until you're ready to roll out 75% electric? >> no. the idea would be it the rolling ball. at the end of 2020 the first trains that will roll it out into the service but we won't wait until also the 5% is it. we'll get it out there as soon as ready. >> okay. director gee >> it's unfortunate our interns left exactly this vision for electrification started in 1980 when their parents were their age. so it takes a long time to get to this point. but it's persistence, commitment, diligence, sweat and tears. but
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will 9 yards. looking forward to finishing phase to get when i could have a phase 3 downtown. so, thank you for the presentation. we did absolutely. thank you for your time >> may be transit would like me to make a commitment and cash contribution we would accept >> listen to this any money we raise we should give to caltrain because otherwise we have a tunnel with nobody in it. >>[laughing] >> member of the public that wants to address the item. >>[calling names] >> surprise: no something about trains. >> right. well, before i get to my remarks, this project is actually impediment to what you are trying to do here. but we quite frankly. there's nothing out there right now that's worth electrifying and won't be anything until dpx is dumb. that's the bottom line. but i
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don't have time to read them i wrote two letters to the board last month. the first one that is the costs which were five times higher than in the east coast and europe in these trains are 70%. easily know each one of these costs half $1 million get something doesn't go there. this letter highlights sunday and issues with proper offer impotent. this project number one, does not go to translate and number two, doesn't increase the speed from 7921 10 mi./h and number three could does not increase capacity from five or whatever 6 to 12 trains and out. these are all requirements of the act. the bottom line is, either you comply with a bond act or no money. what they decided to do is actually introduce
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legislation that's going to modify the language of the bond act because then they cannot possibly get the money right now. how do you think that's going to go? the second letter i wrote go with the future capacity issues. specifically, it will have visited you just a presentation use 6000 proceeds and out. how's that possible? the down to 450 seats, multiply that by six trains, that's 2700 seats. they can't even count. also, we need a toilet. i just showed you a letter from a lady was actually sitting in front of the bathroom i don't even want to tell you what else is in the letter. so, now, these white cars these 16 that we voted last year, they'll have deployed 11 of them and these trains, cars were supposed to increase the capacity of the system to 20%. they are
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creating a capacity crisis and the manufacturing this to come up with funding. last but not least, the bus signaling system is 18 months behind schedule. it's over budget. it is being redesigned right now as we speak. there's a very very good chance there will it will never work. we will never meet the new federal mandated deadline which is now being pushed from 2015-22 2020 and if that happens with this is that the script $350 million. thank you very much >> that includes those of the public to want to address under that item. at this time is scheduled to go into closed session. we not received any indication of the public want to address you on any of the items listed. so we can go ahead and clear the room.